FIXED AND FX LATEST – minimal deviation from month end trends

Only a knee-jerk adverse reaction to the US ADP beat and subsequent bigger than expected Quarterly Refunding, with the former proving unreliable for NFP last time and the latter perhaps compensated by more Treasury assurances that there are sufficient funds for Government operations to continue through the end of next month (so, after the current stop-gap runs out next Thursday). However, UK Gilts did extend their underperformance/divergence vs Bunds when declining through parity earlier to a 122.26 low (-12 ticks vs +17 ticks at best) amidst positive headlines about deals with China. Similar overall muted response in the currency markets, with only Usd/Jpy really maintaining a bid close to 109.00 and session highs just above. Indeed, Usd/Cad dipped through 1.2256 tech support at one stage on the firmer elements of the Canadian data, but has rebounded on no clear breach. Chicago PMI and US pending home sales up next.